S01 ATTACHMENT B NRCS CLOSING AGENT REQUIREMENTS.pdf

U.S. Department of Agriculture Closing Agent Requirements Natural Resources Conservation Service NRCS Easement Programs

United States Department of Agriculture (USDA) Natural Resources Conservation Service (NRCS)

Closing Agent Requirements for Easement Programs

NRCS Easement Program (check only one):

� Agricultural Conservation Easement Program - Agricultural Land Easement (ACEP-ALE) � Agricultural Conservation Easement Program - Wetland Reserve Easement (ACEP-WRE) � Emergency Watershed Protection Program - Floodplain Easement Program (EWPP-FPE) � Healthy Forest Reserve Program (HFRP)

By signing these “NRCS Closing Agent Requirements,” I am certifying that I meet the requirements set forth herein, which ensure that the Federal funds received for the purchase of the subject easement are handled in a manner that protects the interests of the United States of America.

• For ACEP-ALE transactions, these requirements and instructions are in addition to any closing instructions provided by the eligible entity.

• For ACEP-WRE, HFRP, EWPP-FPE transactions, these requirements and instructions are in addition to any closing instructions provided by NRCS or the USDA Office of the General Counsel (OGC).

The Parties to this transaction are as follows:

United States of America Natural Resources Conservation Service [Enter NRCS State office address]

Landowner/Grantor: ___________________________________________________________ [Enter landowners’ names, addresses, and phone numbers]

(For ACEP-ALE only) Eligible Entity/Grantee: ________________________________________________________ [Enter eligible entity’s name, address and phone number]

The closing agent must—

1. Acknowledge that he or she has up-to-date knowledge of the requirements of State law in connection with closing real estate transactions and title clearance.

2. Certify that the he or she is an approved agent licensed to engage in title insurance business in the State.

3. Certify that the title insurance company issuing the title commitment and final policy of title insurance is approved by the State insurance commissioner.

4. Provide the Parties liability insurance coverage or indemnification in an amount equal to at least the amount of the Federal funds for each easement satisfactory to NRCS, acting on behalf of the Commodity Credit Corporation, providing for reimbursement to NRCS for any loss of Federal funds caused by errors, omissions, fraud, dishonesty, negligence, or failure by the attorneys, agents, or closing agent employees to comply with written closing instructions.

• The American Land Title Association (ALTA) closing protection letter revised 4/2/2014 is satisfactory to meet this condition of responsibility.

5. Provide evidence of liability insurance or indemnification to NRCS and, if applicable to the eligible entity, prior to the transfer of Federal funds into escrow.

6. Certify that the he or she will not close on an easement purchase for his or her spouse, children, partners, or business associates, and that he or she does not have a financial interest in the real estate to be covered by the proposed easement.

7. Agree that the United States’ portion of purchase price for the acquisition (i.e., Federal funds) will be sent from the U.S. Treasury by electronic fund transfer (EFT) to the escrow account prior to closing payable to the landowner in the amount of

8. Agree to provide a copy of the proposed settlement statement to NRCS and, for ACEP-ALE, the eligible entity, for review and approval at least 3 business days prior to closing.

9. Agree to close the easement transaction within 30 calendar days of receipt of the Federal funds.

10. Acknowledge that costs to clear title are the responsibility of the landowner, and for ACEP- ALE, also the eligible entity.

11. Return the easement funds and any accrued interest in accordance with NRCS instructions if the conservation easement is not closed within 30 calendar days of receipt of the Federal funds.

12. Certify that he or she will–—

• Immediately prior to closing, examine the real estate records covering the time from the effective date of the title commitment to the date of closing to determine that no new encumbrances have been recorded against the subject property, no adverse change in title has occurred and that there are no intervening matters affecting the title that might result in a new title exception on the policy. Notify NRCS, and for ACEP-ALE the eligible entity, of any such changes or matters that are discovered, and delay the closing, the recording of the deed, and the disbursement of funds pending consultation with NRCS and, for ACEP-ALE, the eligible entity.

• Obtain the properly executed conservation easement deed from the landowner and any other required signatory parties.

• Comply with any listed title commitment requirements.

• Obtain and record as instructed the properly executed curative documents for any items required to be removed, released, subordinated, waived, or otherwise handled as required by the title commitment or proforma policy and closing instructions.

• Secure the policy of title insurance referred to below.

• Ensure all taxes, homeowners’ assessments, etc. are paid to the date the conservation easement deed is recorded.

• Record the conservation easement deed within 5 business days of execution.

• Complete Internal Revenue Service (IRS) tax reporting Form 1099 for the full easement compensation amount, as identified in the conservation easement deed.

13. Immediately following closing, issue policies of title insurance free and clear of any and all encumbrances (exceptions) to the title except those that NRCS, or for ACEP-ALE the eligible entity, have determined to be acceptable.

• For ACEP-ALE easements, ALTA owner’s policy in the amount of the purchase price.

• For ACEP-WRE, HFRP and EWPP-FPE easements, ALTA U.S. Policy (9/28/91, revised

12/3/2012) with the “United States of America” named as the insured party in the full amount of the easement compensation amount identified in the warranty easement deed.

14. Certify that the following package will be delivered within 5 business days of receipt of recorded documents from the local land records office to NRCS, or for ACEP-ALE, the eligible entity:

• A statement covering the agreed upon closing costs

• Policy of title insurance (original and one copy) on the appropriate form

• Recorder’s certified copy of the recorded conservation easement deed and a recording receipt

• Recorder’s certified copies of any curative documents, including subordination agreements

• Original and one copy of executed settlement statements

• Record of disbursement of funds to the landowner

• Completed IRS Form 1099

15. Acknowledge receipt and agree to comply with the terms of these requirements by promptly signing and returning a signed copy of these closing agent requirements to NRCS or for ACEP-ALE, the eligible entity and NRCS.

16. Provide a projected closing date and the name, address, and account number of the financial institution where electronic funds are to be deposited.

17. For ACEP-WRE, HFRP, EWPP-FPE transactions only—

• Obtain a valid Dun and Bradstreet Data Universal Numbering System (DUNS) number and maintain active registration in the System for Award Management (SAM) or successor registry for the duration of any contracts or agreements to provide closing services to NRCS.

• Establish an escrow account in an FDIC-insured account for the easement payment and include the escrow account information in their SAM registration.

18. Complete the following for all ACEP transactions:

Signature of Closing Agent _______________________________________

Name of Closing Agent __________________________________________

Projected Closing Date: __________________________________

19. Provide the following for non-ACEP-ALE transactions only:

Total Projected Closing Costs $__________________________________________________ (Attach itemization of costs)

20. For ACEP-ALE transactions only, the closing agent must complete the following:

Name, address, and account number of financial institution where electronic funds are to be transferred.

Name _____________________________________

Address ___________________________________

Account Number ____________________________

Escrow Number_____________________________

Attach Wire Instructions if applicable

21. For ACEP-ALE transactions only, the eligible entity must complete the following:

I concur with the closing agent’s qualifications:

Signature of Eligible Entity Representative Date

Name and Title of Eligible Entity Representative